Companies are leaving Delaware and relocating to Texas, a trend known as DEXIT. This movement is driven by Texas’ business-friendly environment, which includes a newly formed Business Court and favorable state taxes.

Reasons for the Move

According to an analysis by the Harvard Law School Forum on Corporate Governance, companies are citing five key reasons for leaving Delaware: reduced legal exposure, a rule-based system, cost savings, closer proximity to business operations, and the ability to attract and retain a talented workforce.

Texas is considered a top destination for companies due to its business-friendly state with a newly formed Business Court, amended Texas Business Organizations Code, and favorable state taxes. The Texas Stock Exchange has also attracted businesses nationwide, supporting economic growth in 11 southern states.

ESG Policies

Another reason companies are leaving Delaware is the state’s support of Environmental Social Governance (ESG) policies, which are banned in Texas. In 2021, Governor Greg Abbott signed a law prohibiting state agencies from investing in companies that target the Texas oil and gas industry.

The Texas Comptroller’s Office has a divestment list, and companies have altered their policies to comply with state law. Under the Trump administration, multiple large banks withdrew from the United Nations-led Net Zero Alliance, dropping their ESG policies.

Original reporting: KTBS 3 (Shreveport) — read the source article.